A record number of almost 215,000 houses were sold in the Netherlands laat year, while prices have risen on average 5%. We expect increasing scarcity to slow sales growth this year, and think prices will rise another 5%.

The Dutch housing market will finally grow again in 2014. In terms of both pricing and the number of sales, we are out of the trough. The recovery is not broadbased yet, arrears still increase and the construction sector will pick up in 2015.

As expected, the housing market is picking up slowly but surely. Some indicators are pointing to recovery, but it is still fragile. We expect an increase in sales in the fourth quarter of 2013, and stabilisation of prices in the course of 2014.

Several signs indicate a possible market recovery. E.g. the affordability of housing and consumer confidence improved due to lower prices since 2008. However, economic upturn is essential for a substantial recovery of the housing market.

The bottom of the Dutch owner-occupied housing market is in sight. The fall in house sales has virtually come to a halt and price declines have also slowed. We expect this development to continue and that house prices may stabilise as well in 2014.

The second-hand housing market recorded a good fourth quarter in 2012. Prices stabilised and house sales rose considerably. The main reason was that buyers had a strong incentive to sign a provisional sale agreement before 1 January 2013.

The Dutch existing homes market is currently under heavy weather. A lack of
confidence among house buyers has sapped momentum from the market.
Transaction numbers continue to lag below pre-crisis levels.